D4 - Market Structure and Pricing - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T20:15:57+00:00Price Negotiation in Differentiated Products Markets: Evidence from the Canadian Mortgage Market
https://www.bankofcanada.ca/2012/09/working-paper-2012-30/
This paper measures market power in a decentralized market where contracts are determined through a search and negotiation process. The mortgage industry has many institutional features which suggest competitiveness: homogeneous contracts, negotiable rates, and, for a given consumer, common lending costs across lenders.2012-09-28T09:20:40+00:00enPrice Negotiation in Differentiated Products Markets: Evidence from the Canadian Mortgage Market2012-09-28Financial institutionsFinancial servicesMarket structure and pricingWorking Paper 2012-30https://www.bankofcanada.ca/wp-content/uploads/2012/09/wp2012-30.pdfPrice Negotiation in Differentiated Products Markets: Evidence from the Canadian Mortgage MarketJason AllenRobert ClarkJean-François HoudeAugust 2012DD4GG2G21LL2L22Consumer Bankruptcy and Information
https://www.bankofcanada.ca/2012/07/working-paper-2012-18/
We analyze the relationship between the intensity of banks’ use of soft-information and household bankruptcy patterns. Using a unique data set on the universe of Canadian household bankruptcies, we document that bankruptcy rates are higher in markets where the collection of soft, or qualitative locally gathered information, is the weakest.2012-07-20T09:14:02+00:00frConsumer Bankruptcy and Information2012-07-20Financial institutionsFinancial servicesWorking Paper 2012-18https://www.bankofcanada.ca/wp-content/uploads/2012/07/wp2012-18.pdfConsumer Bankruptcy and InformationJason AllenH. Evren DamarDavid Martinez-MieraJuly 2012DD4GG2Household Insolvency in Canada
https://www.bankofcanada.ca/wp-content/uploads/2012/02/boc-review-winter11-12-allen.pdf
With increasing levels of household debt in recent years, the number of households that may be vulnerable to a negative economic shock is rising as well. Decisions made by both the debtor and the creditor can contribute to insolvency. This article presents some stylized facts about insolvency in Canada’s household sector and analyzes the role of creditors in insolvencies. The average debt of an individual filing for bankruptcy is more than 1.5 times that of an average Canadian household; bankruptcy filers tend to be unemployed or in low-wage jobs, and are typically renters. The article reports that banks that approve more loans per branch, which is interpreted as less-intensive use of soft information (such as the loan officer’s assessment of the applicant’s character), experience more client bankruptcies. This finding has important policy implications, because financial institutions that do not use soft information risk further deterioration in their lending portfolios.2012-02-23T10:00:21+00:00enHousehold Insolvency in Canada2012-02-23